More Tornetta – Bloomberg

A couple of other points on this week’s Delaware Chancery Court decision in Tornetta v. Musk, invalidating Elon Musk’s big pay package.

First: “The lawyers who represented victorious Tesla shareholders may be in line for a record-breaking payout worth hundreds of millions, or even billions, of dollars,” reports Sujeet Indap at the Financial Times. It is logically possible for a Delaware judge to conclude that (1) Elon Musk’s successful efforts, as CEO of Tesla, to take Tesla’s market value from $59 billion to $650 billion, were not worth $55.8 billion to Tesla shareholders, but (2) some lawyers’ successful efforts to make Musk give back the $55.8 billion are worth billions of dollars to Tesla shareholders. And she does in fact get to decide. But I think that if you put it to a vote of Tesla shareholders — “would you rather give Musk $55.8 billion of Tesla stock for running Tesla, or these lawyers $1 billion of Tesla stock5 for suing Tesla?” — you’d get a pretty large majority for Musk? I’m not Musk’s biggest cheerleader or anything, but I feel like he has probably done a lot more for Tesla than these lawyers have.

Source: More Tornetta – Bloomberg